Whole life insurance is a kind of permanent policy that provides a life insurance benefit for one’s whole life with the options to pay premiums for only couple years, 7 years, 10 years, 15 years or right up to your retirement with a guaranteed life time of protection. Whole life also offers guaranteed cash value (like equity in your house) inside the policy with a very attractive dividend rate of return. The cash value inside the whole life policy grows tax-deferred and can be taken out anytime tax-free through a cost basis withdrawal and/or as a loan for any purpose.
Anyone from age 1 month up to age 65 who is looking for a permanent protection and an attractive savings vehicle is best suited for a whole life policy. After one reaches age 65 they may be better suited with a guaranteed universal life policy for only permanent protection needs if they are looking for cash value accumulation.
Yes, but very few …
Based on the above benefits, there is no other savings or investment vehicle available that can offer similar benefits of a whole life policy. So you should get as much as you can get approved for by the insurance company (normally companies approve between 10 to 20 times your income) or as much as you afford to pay premiums for.
Technically, there are two methods to calculate how much Life Insurance you need to protect your family.
First, there is the Human Life Value, where you multiply your annual income by the number of years you have left to work. (Example: John is 45 years old, plans to retire at age 65 and earns $250,000 per year, in order to protect his family, he should have at least $5,000,000 ($250,000 x 20 years) in coverage.
The second method is the Needs Based planning method, where you calculate your monthly expenses and future needs, such as your children’s education and any mortgage or loan payments and purchase coverage based on that amount.
It’s very simple. Please call (877) 972-3262 to speak with our expert advisor or complete contact us form now. We’ll take care of the rest. We’ll compare top companies and find the best policy for you.